Sustainable Real Estate Development

Sustainable Real Estate Development - I continue to work on my Agenda 21 analysis outlining the basis in which our real estate development industry has changed over the past 20 years.

Did you hear the word “sustainable” during any of the four past recessions? Did you hear the word “sustainable” when interest rates were at 18% or when you had to wait in line for 1 gallon of gas? Now, you hear “sustainable” at least once a day!  

Private sector industry professionals have been the visionaries, creators and entrepreneurs of development trends – including sustainable development. Unfortunately government typically swings the pendulum way beyond the practical and continues to compound regulations with more unsustainable regulations.

Local governments continuously change their local land use ordinances, zoning, and land development codes restricting the use of land. When is the last time your local government rolled back development regulations? The industry has moved from being a positive industry to projects being approved by what you can’t do!

I will speak on behalf of the industry – we are not against sustainable development if within reason and practical.  But, we are working against the wave of sustainable land development regulations imposed over the past 20 years. Definitions of sustainable development are:

United Nations:

National Association of Home Builders:

"Balancing the needs of people, planet, and profit"

 

 

International Council for Local Environmental Initiatives (ICLEI)

Permission granted to use the illustration by:  International Council for Local Environmental Initiatives (ICLEI)

 

 

I would like to restate sustainability real estate development in another way:
 

Financial – create community opportunities for industries, businesses, and job creators to enhance stability and continuity.
 

Ecosystem – respect the land form and achieve the highest and best use through creativity rather than through negative land use regulations.
 

Society – the community environment is composed of people where they live, work, play and shop. People should dictate our development patterns through market forces and not the environment.
 

Energy – use our own natural resources to fuel our own needs and use practical cost effective approaches to building and land design.   
 

Infrastructure – local governments must prioritize their tax dollars to maintain and create basic infrastructure i.e. water, sewer, drainage, and roads necessary for community growth 

 

 

 

My definition of a sustainable real estate development project is simple:

 

“A sustainable real estate development project is a Town within a Town”

 

Should we develop our own definition of sustainability when our industry has been slowly dismantled by government forces over the past 20 years?

 

What is your definition of a sustainable real estate development project?

 

You comments and opinions are encouraged – for or against the above.

 

 

AGENDA 21 OVERVIEW

Since the early 1990’s, the United Nations has significantly influenced our real estate development industry. Really? Just HOW has our industry changed and for what purpose?

The last four Presidents have all supported the conclusions and initiatives outlined at The United Nations Conference on Environment and Development (UNCED), also called the Earth Summit, which took place in Rio de Janeiro, Brazil, in June 1992.   

I have highlighted certain points of interest.

President George H. W.  Bush

The President's News Conference in Rio de Janeiro June 13, 1992 The President. “Well, let me first express my thanks and congratulations to President Collor and the Brazilian people and to all responsible for this Conference for their hospitality, for their tremendous success in hosting the Earth summit. It's obvious to all who came to Rio that the Brazilians made a special effort to accommodate so many heads of states and delegates and journalists and visitors. They managed it flawlessly, and they managed it with grace and good humor. We've had a very successful visit. We've signed a climate convention.   We've asked others to join us in presenting action plans for the implementation of the climate convention.   We've won agreement on forest principles. We found a warm reception among the G - 7 and many developing countries to our Forests for the Future initiative.   Many U.S. proposals on oceans and public participation on the importance of economic of economic instruments and free markets were included in this mammoth Agenda 21 document and the Rio Declaration.”

 

 

President William J. Clinton

President Clinton’s Council on Sustainable Development

Introduction
The President's Council on Sustainable Development (PCSD) was established by President Clinton in June 1993 to advise him on sustainable development and develop "bold, new approaches to achieve our economic, environmental, and equity goals."

"In the United States, the PCSD was conceived to formulate recommendations for the implementation of Agenda 21" 

Formally established by Executive Order #12852, the PCSD was administered as a federal advisory committee under the Federal Advisory Committee Act.

I The President's Council on Sustainable Development states that -

"In April 1997, President Clinton asked the council to advise him on: next steps in building a new environmental management system for the 21st century... and policies that foster U.S. leadership on sustainable development internationally. The council was also charged to ensure that social equity issues are fully integrated..."

” government using the guidelines outlined in Agenda 21.

President George W. Bush

 "Sustainable" means to create and maintain conditions, under which humans and nature can exist in productive harmony, that permit fulfilling the social, economic, and other requirements of present and future generations of Americans...

President George W. Bush
January 24, 2007
(Executive Order #13423)

Section 2 of the E.O. directs Federal agencies to implement sustainable practices for:

Energy efficiency and reductions in greenhouse gas emissions.

Use of renewable energy.

Reduction in water consumption intensity.

Acquisition of green products and services.

Pollution prevention, including reduction or elimination of the use of toxic and hazardous chemicals and materials.

Cost-effective waste prevention and recycling programs.

Increased diversion of solid waste.

Sustainable design/high performance buildings.

Vehicle fleet management, including the use of alternative fuel vehicles and alternative fuels and the further reduction of petroleum consumption.

Electronics stewardship.

 

President Barack H. Obama

President Obama issued Executive Order #13575 on June 9, 2011.

This executive order established THE WHITE HOUSE RURAL COUNCIL and in part:

Executive Order

By the authority vested in me as President by the Constitution and the laws of the United States of America and in order to enhance Federal engagement with rural communities, it is hereby ordered as follows:

Section 1. Policy. 16% of the American population lives in rural counties. Strong, sustainable rural communities are essential to winning the future and ensuring American competitiveness in the years ahead.

These communities supply our food, fiber, and energy, safeguard our natural resources, and are essential in the development of science and innovation. Though rural communities face numerous challenges, they also present enormous economic potential.

The Federal Government has an important role to play in order to expand access to the capital necessary for economic growth, promote innovation, improve access to health care and education, and expand outdoor recreational activities on public lands.

To enhance the Federal Government's efforts to address the needs of rural America, this order establishes a council to better coordinate Federal programs and maximize the impact of Federal investment to promote economic prosperity and quality of life in our rural communities.

And in part: (d) identify and facilitate rural economic opportunities associated with energy development, outdoor recreation, and other conservation related activities.

  

What is Agenda 21?

“This largest-ever world meeting brought Heads of State and government officials together with international organizations and representatives of non-government organizations (NGOs) from around the world.

A 700 page global plan of action called Agenda 21 was produced as a result of the Earth Summit: it represents the consensus reached by 178 States on how we can secure our future.

Agenda 21 is like a blueprint for global partnership aiming at a high quality environment and a healthy economy for all peoples of the planet.

Agenda 21 addresses the critical issues we face as a global community: continuing damage to ecosystems, the worsening of poverty, hunger and ill health, increasing world population and illiteracy.

Agenda 21 is composed of 40 chapters that identify each challenge and propose simple realistic solutions towards sustainable development which is: meeting the needs of the present without compromising the ability of future generations to meet their own needs.

Around the world, governments, businesses, non-governmental and other organizations are already putting the ideas from Agenda 21 to work. It is crucial to maintain the momentum of the Rio process and implement the agreements that were reached. This task will require not only the leadership and funding of governments and business, but also the vision, cooperation and work of every citizen. Sustainable development cannot be achieved without all sectors of society working together.”

 

In many respects, the above overview of Agenda 21 outlines reasonable and attainable goals. However, it is important to read the fine print!

 

In subsequent blog posts, I will dissect each relevant Agenda 21 initiative which has altered our real estate development industry. It is my intent to clearly illustrate how the UN, our federal regulations and federal funding have altered the lens in which real estate development is viewed. Is it reversible? I would say YES.

In fact, the basic notion of freedom is in our land and land ownership. If our vision of freedom is altered and Agenda 21 initiatives continue to be implemented our basic rights will forever be violated.

 

We must become aware of the Agenda 21 initiatives implemented at the LOCAL LEVEL ---- where the real estate development industry is directly affected and quickly changed!

 

 

Sustainable Land Development

Sustainable Land Development? – Since the ‘70’s, the land development industry has been highly regulated. However, the political dynamics in the ‘90’s significantly changed our industry maybe forever!

Do you really think the political power structure will have second thoughts about taking more land for the benefit of all? The following blog post outlines the reasons why the answer is NO as sustainable development policies continue to evolve from the 1990’s.

Government’s Land Grab:

Amendment V to the Constitution of the United States of America

in part........................ “nor shall private property be taken for public use without just compensation.”

Can private land be taken by government without compensation through eminent domain – YES and regulatory taking? YES. My short list of private land that has been removed from use through regulation without just compensation:

Flood plains

Wetlands
Jurisdictional streams
Road right-of-ways
Animal habitat
Plant habitat

Sustainability- from Clinton’s Council on Sustainable Development to Obama’s  White House Rural Council has used policies to nudge and push the real estate development industry toward sustainability.

From the early 1990’s to the present, all four Presidents’ have been involved in promoting sustainable development. This includes George H. W. Bush who was instrumental in bringing Agenda 21 to the forefront.

America's participation is the result of George Bush signing Agenda 21 at the 1992 United Nations Conference on Environment and Development.  The United Nations stated the following about Clinton’s President's Council on Sustainable Development (PCSD):

"In the United States, the PCSD was conceived to formulate recommendations for the implementation of Agenda 21"  

NOTE: my next blog post(s) will be on Agenda 21.

Now, 20-years later, the national effort to promote sustainability is alive and well through Federal Government’s funding priorities and the establishment of Obama’s White House Rural Council.

From the White House blog: “One year ago today, President Obama established the White House Rural Council in order to better coordinate federal programs and maximize the impact of Federal investment to promote economic prosperity and improve the quality of life in rural communities.”

But we must start with the framework for Federal Government policy initiatives over the past 20-years AGENDA 21.

UN’s Division for Sustainable Development --- AGENDA 21

The following excerpt is taken directly from the UN Agenda 21 document:

Section 1, Chapter 7

9(f) All countries, especially developing ones, should, as appropriate, formulate and implement programmes to reduce the impact of the phenomenon of rural to urban drift by improving rural living conditions

As with any Federal initiative, the actions of these special councils have a much further reach than you would expect and they fly under the radar of political scrutiny.  Let’s take a look at their written statements.

The President's Council on Sustainable Development (PCSD) was established by President Clinton in June 1993 to advise him on sustainable development and develop "bold, new approaches to achieve our economic, environmental, and equity goals."

President Clinton’s Council on Sustainable Development

Introduction

The President's Council on Sustainable Development (PCSD) was established by President Clinton in June 1993 to advise him on sustainable development and develop "bold, new approaches to achieve our economic, environmental, and equity goals." Formally established by Executive Order 12852, the PCSD was administered as a federal advisory committee under the Federal Advisory Committee Act. http://clinton2.nara.gov/PCSD/

Mission

The Mission of the PCSD was to: 

Forge consensus on Policy by bringing together diverse interests to identify and   develop innovative economic, environmental and social policies and strategies;

 

Demonstrate Implementation of policy that fosters sustainable development by working with diverse interests to identify and demonstrate implementation of sustainable development;

 

Get the word out about sustainable development; and

 

Evaluate and report on progress by recommending national, community, and enterprise level frameworks for tracking sustainable development.

 

National Goals

The following goals express the shared aspirations of the President's Council on Sustainable Development. They are truly interdependent and flow from the Council's understanding that it is essential to seek economic prosperity, environmental protection, and social equity together.

 

Goal 1: Health and The Environment

Ensure that every person enjoys the benefits of clean air, clean water, and a healthy environment at home, at work, and at play.

 

Goal 2: Economic Prosperity

Sustain a healthy U.S. economy that grows sufficiently to create meaningful jobs, reduce poverty, and provide the opportunity for a high quality of life for all in an increasingly competitive world.

 

Goal 3: Equity

Ensure that all Americans are afforded justice and have the opportunity to achieve economic, environmental, and social well-being.

 

Goal 4: Conservation Of Nature

Use, conserve, protect, and restore natural resources -- land, air, water, and biodiversity  -- in ways that help ensure long-term social, economic, and environmental benefits for ourselves and future generations.

Goal 5: Stewardship

Create a widely held ethic of stewardship that strongly encourages individuals, institutions, and corporations to take full responsibility for the economic, environmental, and social consequences of their actions.

 

Goal 6: Sustainable Communities

Encourage people to work together to create  healthy communities where natural and historic resources are preserved, jobs are available, sprawl is contained, neighborhoods are secure, education is lifelong, transportation and health care are accessible, and all citizens have opportunities to improve the quality of their lives.

 

Goal 7: Civic Engagement

Create full opportunity for citizens, businesses, and communities to participate in and influence the natural resource, environmental, and economic decisions that affect them.

 

Goal 8: Population

Move toward stabilization of U.S. population.

 

Goal 9: International Responsibility

Take a leadership role in the development and implementation of global sustainable development policies, standards of conduct, and trade and foreign policies that further the achievement of sustainability.

 

Goal 10: Education

Ensure that all Americans have equal access to education and lifelong learning opportunities that will prepare them for meaningful work, a high quality of life, and an understanding of the concepts involved in sustainable development.

  

NOW – FAST FORWARD TO 2010

Purpose of the Livable Communities Act (it is my understanding that this legislation was not brought up for a vote in the Senate…….but it was introduced!)

The 63 page legislation sponsored by Senator Dodd and others outlined the purpose of the act. The intent of this legislation is to have the federal government guide or influence how local communities are developed in the future.

This act provides the funding for land use planning which will alter the landscape of how land is used for development purposes in the very near future. The important statements are #7 and #9.

As an example, if this legislation was passed, would communities in the future be able to obtain a wastewater treatment plant discharge permit allocated for developments located beyond existing infrastructure?

 
1. Facilitate and improve the coordination of housing , community development, transportation, energy, and environmental policy

2. Coordinate federal policies and investments

3. Promote sustainable development

4. Encourage regional planning for livable communities

5. Adoption of sustainable development techniques including transit-oriented development

6. Provide a variety of safe, reliable transportation choices with emphasis on public transportation and complete streets to:

Reduce traffic congestion

Reduce greenhouse gas emissions

Reduce dependence on foreign oil

7. Provide affordable, energy-efficient and location-efficient housing choices

8. Make combined costs of housing and transportation more affordable to families

9. Support, revitalize and encourage growth in existing communities to:

Maximize the cost effectiveness of existing infrastructure

Preserve undeveloped lands

 

10. Promote economic development and competitiveness by:

By connecting housing and employment locations of workers

Reducing traffic congestion

Providing families with access to essential services

11. Preserve the environment and natural resources

 12. Support public health and improve quality of life for residents and workers in communities by promoting:

Healthy, walkable neighborhoods

Access to green space

Mobility to pursue greater opportunities

 

NOW – FAST FORWARD TO 2011

Obama establishes The White House Rural Council

 During the current economic meltdown and contentious political atmosphere on Capital Hill, President Obama issued Executive Order #13575 on June 9, 2011.

http://www.whitehouse.gov/administration/eop/rural-council

This executive order established  THE WHITE HOUSE RURAL COUNCIL and in part:

Executive Order

By the authority vested in me as President by the Constitution and the laws of the United States of America and in order to enhance Federal engagement with rural communities, it is hereby ordered as follows:  (Note: Why?)

Section 1. Policy. 16% of the American population lives in rural counties. Strong, sustainable rural communities are essential to winning the future and ensuring American competitiveness in the years ahead.

These communities supply our food, fiber, and energy, safeguard our natural resources, and are essential in the development of science and innovation. Though rural communities face numerous challenges, they also present enormous economic potential.

The Federal Government has an important role to play in order to expand access to the capital necessary for economic growth, promote innovation, improve access to health care and education, and expand outdoor recreational activities on public lands.

To enhance the Federal Government's efforts to address the needs of rural America, this order establishes a council to better coordinate Federal programs and maximize the impact of Federal investment to promote economic prosperity and quality of life in our rural communities.

Sec. 4. Mission and Function of the Council. The Council shall work across executive departments, agencies, and offices to coordinate development of policy recommendations to promote economic prosperity and quality of life in rural America, and shall coordinate my Administration's engagement with rural communities. The Council shall:

 

(a) make recommendations to the President, through the Director of the Domestic Policy Council and the Director of the National Economic Council, on streamlining and leveraging Federal investments in rural areas, where appropriate, to increase the impact of Federal dollars and create economic opportunities to improve the quality of life in rural America;

 

(b) coordinate and increase the effectiveness of Federal engagement with rural stakeholders, including agricultural organizations, small businesses, education and training institutions, health-care providers, telecommunications services providers, research and land grant institutions, law enforcement, State, local, and tribal governments, and nongovernmental organizations regarding the needs of rural America;

 

(c) coordinate Federal efforts directed toward the growth and development of geographic regions that encompass both urban and rural areas; and

 

(d) identify and facilitate rural economic opportunities associated with energy development, outdoor recreation, and other conservation related activities.

A short list of cities that have established a Department of Sustainability Development:

Dallas

Ft. Lauderdale
Chicago
San Francisco
Bloomington
Portland
Tucson
Mesa

NOW – FAST FORWARD TO 2012

From the White House:

June 11, 2012 - “As we continue to fight our way back from the deepest economic crisis in generations and build an economy that lasts, rural America is helping to lead the charge,” said President Obama. “On farms and ranches; in towns and communities across this country, rural Americans know that we are stronger as a people when everybody gets a fair shot, everyone does their fair share, and everyone plays by the same rules.

 

My Opinions:

Real estate development has always been a risk – reward industry. But, over the past forty years serious governmental efforts to control our industry have succeeded and the result: risk is higher and the reward less.

The cost of government’s regulating of the land development industry and affecting end users i.e. home owners, renters, retailers, business owners, manufacturers, etc. have been astonishing with no end in sight.

Think about the time line. Those land development professionals or industry stakeholders entering the industry 20-years ago are now the leading edge promoting sustainability. The industry has shifted ………….the pendulum has swung……………..the aspiration of sustainability has been established.  

20-years ago, the early 1990’s recession had ended and the recession in the early 2000’s was short resulting in a mild blip for housing. In my opinion, real estate development professionals, academia, local, state, and federal government staffers that entered college in 1987 have gained their industry experience with sustainability being at the forefront.

As we all know, the real estate industry is learned through experiences and mostly bad experiences. The land development classes that I teach at the University of North Carolina Charlotte Civil and Environmental Department are the first in the nation for under graduate civil engineering students. Otherwise, most professionals must learn about the profession through actual experience – on the job training!

My point is that since most professionals or industry stakeholders learn about the real estate development industry through experiences, sustainability has been permeating throughout the industry for about 20 years without significant economic impact until 2008. Thus, for 20 years, the real estate industry thrived and most attribute the success to what? But now what?

We have sustainable policies in place and industry stakeholders which know no other way to develop land for its highest and best use!

My next blog will be on Agenda 21 and how it has shaped the policies of the past four Presidents and how it has affected our real estate development industry.